Vulture fund

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Vulture fund

A fund that buys distressed debt of commercial companies or sovereign nations at a cheap price and then often sues them for the entire value of the debt. The resemblance to vultures is because these funds profit from the debt of failing companies or poor nations.

Vulture Fund

A mutual fund that invests predominately or exclusively in high risk stock and high-yield debt. That is, a vulture fund invests in companies that are in or near bankruptcy. The idea behind a vulture fund is to buy securities at low prices and to earn an extraordinarily high return, even if it forces a company to do things against its best interest. For example, some vulture funds may force a company to repay debt when the company would be better served by declaring bankruptcy and not paying. As a result, the term is somewhat derogatory. See also: Vulture Capitalist.

vulture fund

A pool of investment money used to purchase distressed financial assets or real estate at bargain prices. Vulture funds are relatively risky but offer large potential profits. The performance of a vulture fund is dependent upon the skill of the fund's managers in identifying and purchasing undervalued assets that can be turned into profitable investments.

Vulture fund.

Like the scavenging bird of prey that lends its name to the fund, a vulture fund seeks out depressed or endangered investments.

Many vulture funds focus on real estate, but others invest in bonds that have been downgraded or are in default and other high-risk securities.

The strategy behind vulture investing is that such troubled securities have the potential to provide a large return eventually, in spite of their current vulnerable position. Most vulture funds are limited partnerships, but some are retail mutual funds that are open to individual investors.

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The companies - some of which are subject to European sanctions - used the controversial Section 110 tax structure to avoid paying duty on billions of euro, using the same tactics as many ruthless vulture funds based here, with 73 of the companies ultimately being owned by a charitable trust.
Michael McGrath, Fianna Fail finance spokesperson, has said that commercial banks in the nation should stop selling loans to vulture funds.
Mozambique has paid a heavy price for defaulting on the debt, which has been sold on to vulture funds.
Mozambique is now in a serious debt crisis, facing cuts to public services like healthcare and education, and could be sued in UK courts by vulture funds seeking a large profit on the debt.
Previous debt crises have seen the emergence of highly speculative funds, run by non-cooperative or holdout bondholders, including so-called vulture funds, which aggressively pursue debt repayments, making them more expensive and possibly disruptive.
The President said as the housing crisis deepens there's a "huge ethical question" about the activities of vulture funds in the property market.
5278, on the other hand, benefits most vulture funds.
Hedge fund players such as Elliott Management and Aurelius Capital are frequently derisively called vulture funds in Latin America because of their propensity to first buy distressed debt at a loss for other lenders and then turn to the U.
Summary: By easing foreign investment norms in stressed assets, the Budget paves the way for the entry of global vulture funds.
Vulture funds purchase discounted debt on the secondary market and pursue private litigation against sovereign states in an attempt to recover large profits off the sovereign default.
But vulture funds DoubleLine Capital and Avenue Capital were still buying up discounted debt as recently as November.
court allowed a small minority of so-called vulture funds to jeopardize a restructuring process to which 92.